1. The Board may establish a fund to pay the accrued benefits of a member that are not payable because of the limitations set forth in NRS 286.537. The fund must be established in accordance with the provisions of section 415(m) of the Internal Revenue Code (26 U.S.C. § 415(m)) and must be separate from the Public Employees’ Retirement Fund.
2. If the Board establishes a fund pursuant to subsection 1, the benefits that are required to be paid from the fund must be paid from a portion of the employer contributions required to be paid pursuant to NRS 286.450. The Board shall:
(a) Determine the amount of the employer contributions that must be allocated to the fund; and
(b) Deposit that amount in the fund before it deposits any remaining employer contributions in the Public Employees’ Retirement Fund.